UK government's green energy plans under pressure
Prominent UK power operator Drax has confirmed that unless the UK government changes the goal post with regards to biomass energy it may well have to move its £2 billion plans for green energy plants overseas. This is a bitter blow for the UK government which has used the green issue to grab the attention of voters and attempt to push the UK to the top of the green energy. So what is going wrong?
It would appear that a lack of tax incentives from the UK government regarding the building of such biomass fuel plants is behind the announcement from Drax today. If you compare coal energy to biomass energy it quickly becomes evident that coal energy is by far and away cheaper although it does cause significant damage to the environment. If the UK government is serious about pushing through new green energy plans for the UK it is likely to be forced into some kind of tax related incentive scheme which could potentially save the three biomass energy plants which Drax had pencilled in for the UK.
The loss of a £2 billion green energy initiative would be a disaster for the UK government, the environment and potentially cause longer term issues for the UK energy sector.
Share this..
Related stories
FSA to stamp out financial advisers commission
In a move which is set to change the landscape of the whole financial services industry, the Financial Services Authority (FSA) has announced plans to stamp out commission for financial advisers for promoting individual investment products and investment services. Since the very early days of the financial services industry there has been a very close relationship between advisers and investment p...
Read MoreUnemployment hits the young in the UK
Official statistics from the UK government show that one in three people aged between 16 and 18 are now out of work as a consequence of the UK recession. Even though the figure of 2.44 million unemployed in the UK has been a hammer blow to the economy, the growing number of youngsters out of work does not bode well for future.
While the rate of unemployment varies significantly arou...
Andrew Sentance again calls for interest rate rise
Andrew Sentance has again gone public on his call for an increase in UK base rates to offset the ever-growing threat of inflation, which remains stubbornly high. This is one member of the MPC committee who has repeatedly highlighted the threat of inflation and the potential problems in the future if this issue is ignored in favour of straightforward fiscal stimulus programs. But why does Andrew Se...
Read MoreNational Express set to feel more pain
It has been revealed that the Cosmen family, the largest individual shareholders in National Express, have been discussing various issues with leading investors and trying to drum up support for a reassessment of company's terminated merger talks with Stagecoach. As we covered yesterday, there is very strong investor opinion with regard to the re-opening of potential talks with Stagecoach, althoug...
Read MoreSavers should take an interest, says Sainsbury's
Nearly 19 million savers have no idea what their rate of interest is, and a whopping £112 billion is held in savings accounts where holders do not know the rate, says Sainsbury's Bank.With some savings accounts now coming with the highest rates of interest the market has seen in the last six years, Sainsbury's is warning savers that they cannot afford to be complacent about interest.Whether peopl...
Read More